Patriot One Completes EhEye Acquisition

Patriot One announced its intention to acquire EhEye in November, and completed the acquisition on January 10.

Patriot One Technologies (TSXV:PAT) announced on Thursday (January 10) that it has officially acquired EhEye by issuing 1.6 million of its common shares to former EhEye shareholders.

The company, which is focused on solutions for detecting weapon threats through its PATSCAN product, initially announced its intentions to acquire EhEye in November. Through this deal, EhEye has become a subsidiary of Patriot One and its video recognition software has been rebranded as PATSCAN VRS.

Patriot One has granted 277,775 replacement incentive stock options to employees, directors and officer option holders of EhEye in consideration of the cancellation of their outstanding EhEye options.

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James Stewart, former CEO of EhEye, will lead Patriot One’s video analytics team, and nine other “key members” will hold strategic positions in the company.

“It has been a pleasure meeting each member of our new video analytics team, all of whom share our vision to create a world safer from acts of violence on our global citizens,” Martin Cronin, CEO of Patriot One, said in the release.

Patriot One will be active with paid trial deployments in the first quarter of 2019 at a number of its reseller partners. Stewart and his team began working with Patriot One’s engineering team in the fourth quarter of 2018 to implement paid trials at the University of North Dakota’s Grand Forks main campus.

At the time of the acquisition, EhEye was in the midst of testing its solution at an international airport and a correctional facility through the Build in Canada Innovation Program.

“[EhEye’s] award-winning threat recognition software will integrate into our client’s existing video camera networks offering a first line of defense to detect active shooters or terrorists approaching a venue with weapons drawn,” Cronin said in November’s release.

Crucially, Patriot One revealed in November that sales of PATSCAN VRS will be based on software-as-a-service pricing models, translating to per camera use per location, with the system receiving monthly updates subject to recurring subscription fees.

Following the announcement, shares of Patriot One were down 2.88 percent to close the trading session on Thursday at C$2.02. The stock has a “buy” ranking on TradingView with 14 verticals in favor, nine in neutral and five against. Patriot One has a “moderate buy” ranking on TipRanks with an analyst target price of C$3.25, representing upside of 60.89 percent from its current price.